reportedly there was a yacht that looked like the same one owned by larry page docked at this pier. back to you. >> we love a good mystery. the fact, you're on a boat for it. thank you. >> i need dramamine just to watch that. >> fun having you here. >> thanks for having me. >> give me a little -- >> "closing bell" starts right now. hi, everybody, welcome to the "closing bell." i'm maria bartiromo coming to you today from chicago. site of the paulson institute financial crisis symposium where we have a special lineup just ahead. bill, breaking news. >> yes pp, you do. but we have plenty going on here. i'm bill griffeth at the new york stock exchange. we'll have more about the incredible lineup in a moment. first, look at this market. we could be looking at a new all-time high for the dow this hour in addition to the s&p's all-time high, which we'll

probably get today. write down this number, 15,676.94. that's what we need for an all-time high on the dow. especially what we need is a gain of 108 points. we're about 10 points away from that right now. all of this despite a dip in consumer spending last month. and consumer confidence numbers that were well below expectations. but yet this market continues to power higher. >> absolutely. we've got money moving into equities. amazing this market is where it is just five years after the financial crisis. here in chicago, we will be speaki speaking exclusively with hank paulson. we'll get reaction to today's breaking news about the deal between jpmorgan and the justice department. but it may be coming apart. we to want get his take on that. then former senator chris dodd and former congressman barney frank are both with me. they spawned the dodd/frank regulations of course. as well as securities and exchange commissioner mary schapiro will be joining us in

this hour. after the break i'll talk with goldman sachs ceo larry blankfein on a day where we see stocks moving into record-setting manner. >> we're not forgetting the white hot story out of obama care, the nbc news report confirming the white house knew millions would not be able to keep their health plans even as the president was promising just the opposite. we have aetna ceo mark bertolini reacting exclusively to that coming up on the "closing bell." >> let's get to the red hot market. a market in unchartered territory. the dow jones industrial average up. we've been steady the last hour. the magic number as you heard to watch, 15,767 would be an all-time high. we're close to it with a 90-point rally. nasdaq, take a look at where we are, technology a leader today.

up 39 47. s&p 500 also in record-setting territory. if we close even just a point above where we are, yesterday we close at an all-time high. we're in unchartered territory with s&p 500 at 1769. let's talk about where the strength is today. will the dow do it here? new all-time high, bob pisani. what is the money say on the floor right now? 15 points away. 15676 would be a cleesing high for the dow jones industrial average. 15 points away. we're already at a new high on the s&p, dow transports and russell 2000 on intraday basis. i've been trying to explain for days why this happened. i called it the great stock rotation. art cashin called it the great relay. it's simple. markets keep rotating around into new sectors. nothing goes down for very long. right now, eight of ten s&p sectors are at or near new

highs. nothing is lagging for very long. in 2013 no sector has lagged for very long. if it does, it comes back in a month or two. let me show you an example. take a look at the big sectors this month. these are the biggest sectors in the s&p. they're all up 5%, 5%, 6%. that's unusual to see a clustering at a time. it's happened frequently this year. what else is going on? recently, for example, consumer staples have been strong. in the last few days, they have been the market leaders. if you look, for example, at clorox, gone from 87 to 90 in a few days. that's not hard to explain, folks. market momentum. back to you. >> let's talk about this market action as we set new all-time highs again maybe today. joining us in our "closing bell exchange," patricia powell from powell financial group, oe moore from charles schwab is with me at the big board, david seeberg and rick santelli.

someone turn bob pisani's microphone off, please, i'm begging you. thank you very much. omar, why are we at all-time highs right now? what is going on? >> it's a beautiful day, a great day. we see strong corporate profits. 70% of the companies in the s&p 500 that have reported have been earning. 40% have revenues that is reality, so it's actually pretty good. the federal reserve continues to support liquidity. i think we have heard, and i think everyone expects, the commodities everyones the ghost of tapering will not be here until halloween. i think we can wait for that until 2014. >> but i would add to that, not necessarily in that order. >> not in -- >> you mentioned tapering last but that is the primary reason we're going higher here, isn't it? >> that is correct. also the flows into equities. i think what we have seen is this is going to be the first year we'll see net inflows into equity funds as well as the first year we saw outflows out

of fixed income. >> patricia, do you want to buy into this market here where we are or do you worried things are getting overheat given the fact we are large ily looking at the federal reserve as the big boost here? not necessarily end market demand, wildly improving fundamentals. >> i think you have to be cautious in here. we are in the fifth year of a market recovery. even if you think we're in a secular bull market, which i do, we have a cycle to our economy. we have a cycle to the market. fifth years can give you some nasty things. the fifth year of the 1982 market brought you the crash. we got five years out of the market through '95 to '99, and then we stepped off the curb and we ended in the 2000 dotcom bubble bursting. >> from a practical standpoint, what does that mean? when you say be cautious, what are you saying? are you saying selling into the rally? raising cash? what? >> i'm saying you have to be defensive in your choices here. of your risk money, i think you have to have a very significant

amount of it in defensive position. so, what i might do is be looking at value stocks as opposed to growth stocks. i might be looking at midcaple and large cap value stocks. i might be looking at staples, the consumer stams have been leading, but only for about a month. those are traditionally a defensive place to be. >> david, you think we're in a phase where a lot of what's going on is performance-chasing. we've already had great performance in the he cequity markets for the last few years. now people want to get on board and be part of that, right? >> right. i do think that still. i mean, i think that in general there were a lot of macro headwinds that kept money on the sidelines. those macro headwinds, i.e., government shutdown, debt ceiling issues, we're through them and it looks like people are much more focused on stock-specific right now. you look at the vix options volume. the lowest it's been all year. i think people are looking for differentiated ways to make that, to at least enhance

performance or show they're outperforming into the end of the year. >> rick santelli, what are you seeing in a day the market is in record high territories? in equities and in pits in chicago? >> we're seeing a couple of curve gyrations but not much. the long end is on change in the 30-year. bonds, short maturities like the five are doing better on the upside and yield curves steepening. that's predicted by the big fund managers. the real issue is, if you look at the conversation we're having today, it's a majority of, what's going to happen with the fed? what's going to happen tomorrow? what's going to happen with the taper? what's going to happen with qe? you know, five years ago, maybe eight years ago, the majority of conversation was, retail sales, durable goods, what the economy's doing. even though i don't consider it a negative that stocks are going up, i think the dialogue we are having says it all. if sammy sosa was the only guy that's juiced, his home runs

don't count. if the league said, everybody can be juiced, then instead of looking at which players are the best, you'll see which doctors are the best. that will be the way you bet on baseball. it's just a little different strategy. >> speaking of which, rick, you know, the bank of england, mark kae kearney said they are not going to tighten their monetary policy until their economy growth is sustainable. in is a global refrain. we're flaerg a lhearing from a central banks. >> i had a noble-winning economist on and he looked me in the high eye and said, qe is no big deal, they can reverse it, it's a ledger industry. when he said it sounded like a bear stearns issue statement. buying long-term treasuries. if a nobel laureate economyist doesn't see the danger in that, i rest my case. >> very good. thank you, folks, for your thoughts today on the markets. appreciate it very much.

>> we're in the final stretch. we're in the final stretch of a rip roaring day on wall street. 50 minutes until the closing bell sounds for the day. a market that's strong. up 88 points. looks like we're losing some momentum here. s&p 500 still alive and well in record territory, bill. >> dow needs another 20 points -- >> if you like your health care plan, you will be able to keep your health care plan. period. >> we now know that promise was not true. the white house has known that for at least three years, even as the president kept repeating that promise. so what else was said? what's turned out to be the truth? do we -- we do a health care law reality check coming up with mark bertolini of aetna in a moment. top white house adviser valerie jarrett tweeting nothing in obama care forces people out of their health plans. and nothing in the law is forcing insurance companies to tell people their plans are no

longer offered. where's the discounnect. >> we'll do the fact-check when we speak exclusively to mark bertolini of aetna. stay tuned. ♪ [ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed.

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welcome back. president obama made a lot of promises when it came to passing and selling his signature health care law. not everything is playing out the way he said it would have. michelle caruso-cabrera here with a obama care reality check. >> let's go with the obvious promise made repeatedly -- if you like your plan you can keep it. you can read it on cnbc.com, millions of americans who purchase individual plans are finding out that is not true. they're getting cancellation letters saying those plans don't meet the new obama care standards. lisa myers also reports, the white house knew for years that this promise would not be true because when the regulations were finally written, the way they were written meant that many individual policies could not be, quote, grandfathered in as the president promised, for

example, on february 25, of 2010. >> any insurance you currently have could be grandfathered in so you could keep. you could decide not to get in the exchange the better plan. i could keep my acme insurance, just a high deductible, cat strofk plan. i would not be required to get the better one. >> number two, more affordable coverage. all over whitehouse.gov, there are repeated references to more affordable coverage. once again, nbc news investigative unit reports millions of buyers of individual plans are finding out their premiums, instead, are rising sharply higher. number three, you can't be denied because of a preexisting condition and you can't be dumped by an insurance company. yes, those are true. but what the white house may have failed to consider is those provisions would likely lead to higher costs. it's extremely tough to promise you will have more, more, more and yet pay less.

and, i leave you with this sound bite from the president in 2010. >> it gives customers more choice and more options. there's so many good things about this, i may have forgotten one. >> maria, bill, back to you guys. >> lovely. >> thank you. >> thank you very much. well, health insurers are feeling the frustration millions of americans are facing as they try to comply with the new health care law. aetna is one of those companies. unrelated to the mess in obama care, the stock is down 1.5% today after reporting a decline in quarterly profits and providing guidance for next year, saying it's tough to find growth for 2014. >> joining us now exclusively to talk about this is the head of aetna, chairman and ceo, mark bertolini. we kick it off on health care law. >> welcome. >> good to see you, mark. thanks for joining us. >> hi, maria.

hi, bill. >> we know the white house is coming under fire for promising people that they could keep their health care. that has already proven to be false. lisa myers, nbc news, reporting people are getting cancellation letters. you also have white house aide valerie jarrett refuting this on twitter. basically tweeting, fact, nothing in obama care forces people out of their health plans. fact, no change is required unless insurance companies change existing plans. so, what's your reaction, mark? tell us -- can you separate fact from fiction for us? >> sure. the only people who can keep their plan indefinitely are people who in the individual and small group market were in that market before march 23, 2010, and over that period, from march 2010 till now, did not change their plans. so, the fact is that the individual market turns over a

third every year, so in three years, we probably turned over most of the individual market. and the fact is, because of the economy, small groups and individuals change their plans almost every year to make them more affordable and, therefore, not subject to grandfathering. >> is it disingenuous on valerie jarrett's part to say no change is necessary unless insurance companies change existing plans? did you have a choice or would you have a choice to make changes in plans? you had to phase out some plans because they didn't meet the minimum requirements, didn't they? >> well, we did have to create plans that were meeting the minimum essential benefits. we do need to provide those to individuals who are not grandfathered. so, individuals who are not subject to grandfathering must make a choice between now and december of 2014, depending on their plan terms, to switch to an aca essential benefits plan.

>> mark, you know what i don't understand, how come it's so expensive? we spoke with two people yesterday who were just, you know, so upset. initially her plan cost her, i think it was $250 a month. it's gone up to $600 a month, the new plan. then the other one, you know, it was costing hi -- >> went up ten times. >> -- her $500 and went up to $2,000. it's skyrocketing what the new plans are costing. is it because there's a lot more things in there and many of these things they don't even want? they said, i don't need this, i don't need that, i don't need child care. that's not what i'm looking for. how come it's so much more expensive, the new plans. >> there are three factors. the largest factor is that the essential benefits requires a minimum of 60% actuarial benefit. for most americans and more than half of americans who buy individual coverage, their benefit plan is currently below 50%. so, if you just move up to 60%,

that's a 20% increase out of the box. secondly, there's anywhere from 4% to 5% in taxes and fees associated with the new affordable care act. and then there are changes -- the third thing, there are changes in rating. there are more benefits required. there are changes in, you know, preexisting conditions. all those add up to an average increase we've seen across the united states, depending on the market, of anywhere from 30% to 40%, ranging anywhere from low single digits all the way over 100% increases. >> the point is, the more people who opt in, the less the premium has to go up. more people opting in, that's more premiums coming in so the levels of the premium don't have to go up so much. but that's a big if. let's talk about the impact on your bottom line for next year. in your conference call today, you said, it's unclear what your growth is going to be next year, in part, because of the dust failing to settle on obama care right now, right? >> well, i think there are a lot

of factors. first, the economy and whether or not there's going to be a change in utilization, so is that has an impact. more importantly, the medicare rates were cut rather dramatically this year. so, we need to find a way to bridge the gap between what it will cost seniors out of pocket and what we are able to cover under the medicare advantage program. thirdly, we have to pass through -- aetna alone will pass through to its customers over $1 billion worth of taxes and fees associated with affordable care act that need to go into pricing. so all those things cause a very unstable market uction cause us to rethink the fundamentals. we need to be more careful about the guidance we give next year. truth is, our operating plan is not finished yet and this is early. we have an investor conference on december 12th where we'll be more exact about whether or not we see growth in earnings and in eps next year. >> we definitely want to focus on that day because people i

know people are interested to see how this is impacting your business as well as corporates in general. so, you've got premiums going up anywhere between 30% and 100%. you have taxes and fees that you've got to pass on to the consumer. you've got no choice. so, they're going to be eating and swallowing higher expenses there. let me ask you about the jobs part of this story, because this is something that's under debate right now. because the law requires companies to offer health insurance to anybody working 30 hours or more, are you seeing increasing numbers in terms of companies saying, okay, then work 29.5 hours, go to part time, work fewer than 30 hours a week? >> i'm not sure whether or not the affordable care act and the 30-hour work week is driving it, but i can tell you that what we're seeing in our large accounts is higher in-group attrition, decreases in employment in our large groups, not nearly as high as 2009, but

definitely higher than the last two, three years. and we're also seeing higher part-time employment and interest in part-time benefits. as you know, better than i do, the labor market statistics show much higher growth in part-time employment this year overall growth, the inverse -- >> which means higher premiums because of the opting out. >> yes. >> mark, thank you for your insights on this. appreciate it. >> thank you. >> mark bertolini. heading toward the close, we have about 35 minutes left in the trading session here. the dow has fallen back. we're up 89 points. we need 108-point gain for all-time high for that average but the s&p, any positive close is another new all-time high. looks like we'll get that again today. >> amazing that we're even in the neighborhood. you know, bill, this market is on fire. we're going to talk about the s.e.c. next. is the securities and exchange commission more aggressive under current chair, a woman, mary joe

white, her predecessor mary schapiro will react exclusively. first broadcast interview since leaving the s.e.c. she's coming up next. then it's been three years since the dodd/frank bill was signed but they say the too big to fail is bigger than ever. we'll bring barney frank and chris dodd, we'll ask them about the jpmorgan settlement might be on the verge to collapse. a lot to talk about coming up on krb. tdd#: 1-800-345-2550 trading inspires your life. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts.

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welcome back. we're live today coming to you from the paulson institute crisis symposium, reflecting on five years since the financial crisis. aspects of the u.s. financial system that's changed is the securities and exchange commission. want to talk about that right now with its former leader. with me now, mary schapiro, former chairman of the s.e.c., in her first broadcast interview since leaving the commission. mary, nice to see you again. >> nice to see you, too. thanks. >> thanks for joining us. i want to ask you first about where we are five years later. hank paulson assembled this group of witnesses. what an amazing group we have here. witnesses to the 2008 crisis. major player in the financial services sector right now. how would you characterize where we are right now in terms of

five years after the crisis? are the capital markets stronger? are we better off or not? >> i think we've made a tremendous amount of progress, in particular areas. there's more to do in other areas. but, for example, with respect to over-the-counter derivatives, a lot of work has been done to bring that $600 trillion market into the sunlight. pring pretrade and post trade transparency, clearing to counterparty risks, business conduct standards and those are rolling into place as we speak. hedge funds are now required to be registered with the s.e.c. not so much for the s.e.c. to directly regulate them, as for it to have an understanding about how many hedge fendz are out there, what are they doing, what are their strategies, provide more information and transparency to regulators. resolution is well advanced. capital, there's more and better quality capital in the system. we have the fsoc, great oversight to share about emerging, systematic and

institutional risks that are important to address as early as possible. i think in a lot of ways the cfpb has been created. a lot of ways, a lot of tremendous progress. i think there's obviously still more to do in a few areas. one i would say is money market fund reform. a lot of work was done in 2010. in my second year at the commission. but there's more to do there. the funding of the regulatory agencies remains a concern, i think. bank regulators are self-funded but the s.e.c. and cftc aren't. and i think the s.e.c. has work to do still to finish its derivatives regulation. >> let me ask you about that. i'm glad you started off with the derivatives regulation because on my panel here at the symposium, larry fink made a really interesting observation. he said, look at all of the glitches we've had. we had another glitch, by the way, today, at nasdaq. they said it was human error. so, i'll put that aside for a moment. but the flash crash. you know, you've done so many work on all of this.

as we move more products onto public exchanges, are these exchanges equipped to actually handle all of the new business coming their way? this, of course, one of the new laws in dodd/frank. >> right. it's a huge issue, i think. the dodd/frank law required that most of the over-the-counter derivatives market will no longer be over the counter but directed on stfs, swap trading facilities of different sorts. it will be important as we concentrate risks in counterparties, like clearing houses and exact on exchanges, or trading facilities, that they be as resilient, as well run, risk-managed, capitalized and technically proficient, technologically capable, as possible because there's the potential now to impact much broader markets. so, you know, we saw the problems in may 2010 from the flash crash.

we took a number of steps to address those, single stock circuit breakers, banning naked access to the markets, so forth. now the s.e.c. has reg sci, which requires more stress-testing, testing of algorith algorithms, more tighter supervision of technology exchange systems. it's really critical from both a fair operation of the market perspective as well as a customer and investor confidence perspective that these markets devote the necessary resources to the technology to keep them up and running. >> i want to ask you about resources, because your resources were squeezed, i know that. i want to ask you about that. but last week we had on this program mark cuban. he, as you know, was acquitted of insider trading. he had real opinions about the s.e.c. i want to get your take on what he had to say. >> they have very significant problems. one problem is they think like

lawyers. right? their job is to make sure the markets are fair. their other job is to build invest eor confidence in the market. they failed missably at both because they're not trying to solve either problem. they don't even know what business wall street is in. >> so, i don't really want to comment on his case or on him in particular. let me just say that the s.e.c. has made enormous strides in the last five years to become much more expert in trading and market structure, in complex derivative and other products. and i think is the -- the results you can see in the numbers, record years of enforcement, significantly more complex and important cases that have been brought successfully. major changes to the technology the agency uses for market surveillance. two weeks ago the agency announced extraordinary amounts of data are now available to the public on its website that will help us understand what the quality of our markets is. what is the impact of

algorithmic trading, the impact of high frequency trading. all those things the agency is in a position to analyses and understand. if necessary, write rules about. if necessary, bring enforcement cases about. needless to say, i couldn't disagree with him more. i think the agency is hitting on all cylinders. >> this is probably in response to a public that is demanding it. there's still anger out there. your successor at the s.e.c., mary white, has started off first six months as tough cop ima image, bringing up charges against dozens of companies, individuals, and making those settle admit wrongdoing. >> in some cases, that's right. that's pretty much an evolution of the policy that we were starting to pursue. goldman sachs and the advocacy d.o. case had to acknowledge they had not done good and fair and adequate disclosure. and then we stopped the neither admit nor deny policy with any

case where there was a parallel criminal proceeding and finding of guilt or admission. we were moving in that direction. i think it's great she's taken it to the next step. they won't be able to do that in all cases because the agency is dependent upon being able to settle a number of cases in order to use its resources for the next problem and the next fraud that's out there. but i think it's an important step forward. >> is it a resource problem? >> oh, absolutely. you know, there are lots of problems. i mean, barney frank made this comment at the end of my panel out here, that lots of things were done during the financial crisis that were stupid or ill-informed or not good business judgment but didn't rise to the level to being crimes for which people should be prosecuted. you know, i think that's right, but i also think that where we do and where the agency finds violations, it has to pursue them. i'm highly confident it will. >> mary, good to have you on the program.

>> nice to see you. >> thank you for spending time with us. mary schapiro joining us, former s.e.c. chairman. we have a market in record territory. a market 90 points higher with 25 minutes before the closing bell. >> s&p still in record territory. they may be best known for dodd/frank reform bill, but chris dodd and barney frank were big proponents of getting obama care passed with their time in office. we'll get the latest reaction on the latest backlash to obama care. >> also ahead, goldman sachs, before twitter's highly anticipated ipo, lloyd blankfein with be with us to tell us what it will mean to the bank's bottle tom line. bny mellon combines investment management & investment servicing, giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments

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as we have discussed, quite a lot recently, it's been fiyea since the financial crisis and congress is still struggling to implement the regulations intended to permit such a crisis from happening again, maria. >> absolutely. joining us right now is former congressman barney frank and former senator chris dodd, co-authors of the dodd/frank laws that grew out of the financial crisis.

gentlemen, thank you for joining us. >> welcome both of you. >> appreciate you joining us. now, before we get to the legislation, i want to hit the news of the day. that is, of course, jpmorgan's $13 billion settlement with the justice department seems to be falling apart. according to reports, they are in danger of falling apart because they are fighting over the washington mutual deal and what jpmorgan should be liable for and what it shouldn't be liable for. now, congressman frank, you made some comments about this on the panel earlier. what's your take if this falls apart? >> i will be disappointed because i think it is important that there be compensation and that there be penalty for bad behavior. with regard to washington mutual, i'm not as familiar with the specifics. i was there and i know bear stearns was forced upon them by the federal government. i don't think they should be hammered by that.

my understanding is the washington mutual deal is one they wanted to do. that it was not similar. and in that case, i would treat them differently. so, i do not sympathize with jpmorgan chase based on the facts that i know with not getting penalized for washington mutual. and i think the answer is this, if the deal falls apart, then it will be incumbent on federal authorities to initiate some cases and fight this out in the courts. >> essentially what they're saying is -- >> bill, i'm so sorry, bill. go ahead. >> well, i'm going to sort of join with barney in his comments, but it's one of those matters that i'm no longer in the congress. just reading about it so i want to be careful about commenting on it. obviously, would like to see everything settled. other than a protracted lawsuit that would go on for years before people get compensated for wrongdoing. but i'm reluctant to jump into something like this without knowing a lot more about it. >> bill, go ahead. sorry about that. >> essentially what jpmorgan is arguing is that the wamu deal

was done with the fdic and that they are covered by fdic regulations, therefore, and that what they're hoping to be able to do is the part of the penalty they end up paying, they can be compensated by the fdic. essentially what would happen is the fdic would end up paying part of the penalty they have to pay to the federal government on the wamu deal. that's the sticking point for doj right now. mr. frank, that would be embarrassing if one part of the government has to pay the other part. government for-n this financial settlement. i guess that's what we're worried about. >> it would be more than embarrassing. it would be wrong. i don't know the exact legal situation, but if there was fdic involvement, it's not my recollection, that washington mutual was forced upon jpmorgan chase. the notion they should get the fdic to pay part of that penalty, it's clearly bad public policy and for a man who generally has better judgment about public opinion than jamie

dimon, it's a terrible mistake. the amount of money he would be getting out of the fdic pot, which is there to ensure depositors, that amount of money can't be worth the bad public opinion he will generate by this. >> but given all what we know about what went down five years ago and where we are today, should the door be left open for criminal charges? >> oh, sure. absolutely. in fact, if that's where the evidence takes them, absolutely. that wasn't our job in writing legislation. people would ask us that, but never did barney and i think it was our job to prosecute people. >> it wasn't our jurisdiction. the way congress works, our committees didn't have jurisdiction over criminal penalties. >> so we didn't do that. but as i heard your interview with mary schapiro, frankly, i'm glad they are being aggressive, now that we've given them a lot more tools to operate with. and admitting wrongdoing, i know they don't like to do that for

the obvious reasons, but that will be a further deter rent in the future about behavior. when unnecessary risks are being taken, you're being rewarded for that, not performance, and i think that message has a valued effect. >> it is the case we had to pass a law in part to make clearly illegal things that weren't clearly illegal before. i would say to some of my liberal friends, i share the anger with some of these people but liberals have been good procedural civil libertarians. it's a basic principle you don't prosecute someone where there was ambiguity. if someone could not have clearly known something was illegal, but if this was clear this was illegal behavior, you can get him. the problem was that there simply weren't rules that said you couldn't do some of these things. going forward, there will be. i noticed the cfty has used the authority granted in the bill and gone after people. they say we're doing a prosecution we couldn't have done before the legislation because the acts happened

afterwards. >> let me ask you about the law because regulators have completed about 40% of writing the rules required by dodd/frank and the implementation. should we be farther along at this point? people are frustrated. how come only 40% has been implemented? >> both of us -- barney speaks for himself, but both of us would like to have this done by now. your question is, would you like it done now at the expense of getting it done right? i think both of us feel very strongly that getting this right -- this is complicated stuff. we gave tremendous amount of authority to the regulators. there's only one part prescriptive, dealing with the residential mortgage market. but other than that, we gave the regulators the authority to decide what steps to take. you get into areas like the volcker rule, it's terrible yl complicated and five regulators determining what the consistent operation a operation out to be done.

i hope we're getting to a closure and finishing up. if you asked me it's going to take six, eight months longer but get a better outcome, i'd take the better outcome every time. >> i'd add two points. as mary schapiro, republicans taking back the house knew the law was too popular to appeal so they'reunder mining it by not funding the authorities. in particular, the commodities committee, they were the largest recipient of new authority in the law and they have something like $300 million. not nearly enough. the other thing that makes me less nervous than some others is this, even in the areas where the rules have not been promulgated, there's no evidence that financial institutions are rushing to get in with things that might be shaky before the deadline. in other words, it wouldn't be in the interest of any financial institution to start doing something now, some line of business that might be risky that would soon be illegal. so, i think the fact that these rules are pending has frozen a lot of the bad activity. >> letmy ask you this real quick. on my panel, larry fink said,

this could be the unraveling of the financial markets, the next big crisis. that is all the new securities and derivatives going on exchanges, are you worried -- i mean, we've seen glitches across the board on public exchanges. are you worried that the system can't handle all of these new products going on, transparent? >> i'll start with this. first of all, we put them on exchanges because that's the thing we wanted to do. we didn't want the darkness. we wanted open prices. secondly, i think the obama people should take some comfort for that because it turns out that massive computer glitches are not purely a problem of the health care bill. but inherent elsewhere. finally, it's not something that we looked at because it hadn't yet happened. it is important to look at and to go guard with it. but the answer is not to retreat from the openness. you know, as chris -- we didn't ban anything. we had a market-orientedchanges example of that. >> given the size and speed with which that market grew in such a short period of time, and the

transparency was critical, in my view. again, we didn't -- as i said, this is not talmudic, not biblical what we did, and we'll see if it works as well as we hope it does, if not, you need to tinker with it. you need to do that. barney and i understood that, we were operating, wanted to get a bill done but we couldn't guarantee it was going to work as well as it was going to. but if you ask me if we should abtd that and go back to the opaqueness -- >> congressmen, thank you for extending your time. >> 13 minutes left. the dow is up 100. the nasdaq is up about 9. the s&p still in record territory. heading toward the closing bell. a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments.

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and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. all day long we've been looking at companies with sky high earnings ratio merit this price investors are paying for their stocks. dominic chu looks at two more stocks on his list. >> let's look at metlife, because this particular company, you can see, has been on a tear over the course of the past year. the shares are up and they've been up quite a bit. now, the real question for shares of metlife, you can see they're up about 40% so far over the past year.

can metlife sustain those valuations? well, the good story for metlife, a life insurance company, a retirement company, is that the overseas life insurance business is good, growing, robust. they bought a big chunk from aig at one point. the bad part of the story here is that we continue to be in low interest rate environments here throughout the course of the u.s. and in europe. they're not able to generate the kinds of returns that they have in the past. and it all leads to a valuation, priced earnings ratio of $105, meaning you'll pay $105 for every single dollar of corporate profits. bill, overall, metlife, one financial worth looking at because its valuation quoo be justified or not. back over to you. >> thanks very much. heading to the close. ten minutes left in the trading session with the dow up 100 point now, maria. >> yeah, we're in record territory. can the dow close at an all-time high today? find out when we come back on "closing bell." tdd#: 1-800-345-2550 trading inspires your life.

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ten minutes to the close with the dow up 103 point. the s&p 500 is all-time high territory. joining us is barbara morrison. do we deserve to be in all-time high territory here, given the

state of the economy and earnings, do you think? >> we have a fully valued market. trading 15 times this year's earnings, 15 times next year's. that's the top end. with earnings only growing a few percent this year, same thing last year, so in a slow growth market, i think we're pretty fully valued. >> you don't sound like you're buying anything right now. >> there are always things to buy, always companies to bet that -- you were talking about metlife a few minutes ago. i think aig has a good ways to go as it delivers on its earnings. >> what would you avoid? are there sectors that are just too expensive right now? >> you know, i think some of the consumer stocks got a little expensive. i think some of the higher dividend-paying stocks got expensive. >> but we see different sectors rise to the occasion, right? >> we do. >> we haven't had a correction but other sectors step up when others fall to the wayside. >> it's been a strong market.

the debt ceiling, the market gave a yawn to it. we have crisis fatigue, fed support and it's a strong market. >> good to see you. thank you for joining us with sthouts on the market. we'll come back with the closing countdown. dow is moving higher. the s&p looks like it will be an all-time high. >> we're at 103 now, bill. it's going to be close. the reverberations of the affordable care act keep coming, pulsating through the economy. goldman sachs ceo lloyd blankfein will be with me to share his thoughts on that and a lot mour. estro of project manag. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price.

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get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. welcome back. looks like we're going to do a year to date chart for the dow. we've been in a trading range and now it looks like we're breaking above that. this looks like we could have an all-time high. we need eight points for it to be the all-time high. mark spellman from valueline, this is a day before the fed announcement. this market doesn't act like it's expecting anything bad news from the fed. >> it doesn't. but every day like this makes me a little nervous. we've been enjoying this early christmas gift from the fed. the fact they won't stop tapering -- >> you feel like barbara, we're

fully valued then? >> i look at all the headwinds. it's inevitable that we'll have the tapering. >> probably not tomorrow, though. thanks for joining us. that will do it. very close to an all-time high for the dow. we have it for the s&p. maria continues now with the second hour of the "closing bell" from the paulson conference in chicago. i'll see you tomorrow. an historic day on wall street. the dow and the s&p 500 closing at all-time record highs today. it is 4:00 on wall street. 3 p.m. here in chicago. do you know where your money is? hi, everybody, we wilcome back "closing bell." i'm maria bartiromo coming to you from the paulson institute financial symposium. it's a record setter. stocks red hot on wall street once again. the dow tonight at a new all-time high of 15,681 and chan w